"We have a situation where a client has won a judgment against a defendant. Instead of taking the settlement money directly, the client would like the defendant to fund a NQDC Plan. Because the client is not a service provider to the defendant, I don't think 409A applies. Is that accurate? If so, what, then, governs the NQDC Plan? Is this based entirely on the 'constructive receipt' doctrine? Do we still have to follow the 409A restrictions regarding distribution events, or can we be a bit more creative (e.g. if the client has a 'down year' where their profits are below $____ it would trigger a payment)?"

"There is a new audit client that did not attach the accountant's review of the 5500 upon filing. Would anyone be able to cite the potential ramifications and penalties for an error like this? I believe this would have to be corrected through VCP or DFVC, but I'm pretty sure the penalty would be under DOL/IRS discretion."

"Lets assume employer has 100K in Health FSA forfeitures fro the applicable year. As I understand it, to the extent forfeitures represent 'experience gains,' the section 125 rules and ERISA would regulate what an employer can do with the forfeitures (i.e, defray plan expenses, reduce EE salary reductions for the following PY or refund). Lets assume now that the loss experience (i.e., the amounts the employer ate in overspent accounts relating to mid-year terms) is 95K resulting in net experience gains of 5K. lets assume further that the admin expenses for the Heath FSA for the applicable year are 5K. 5K out of the 100K in gross forfeitures is eaten up by the admin expenses leaving gross forfeitures of 95K, which after applying the the experience loss results in 0 net experience gain for the applicable year. Does that mean that the employer can use the 95K in forfeitures (i.e, net forfeitures after deducting the 5k in admin expenses) as its sees fit (even for paying expenses for unrelated benefit plans) since there are no experience gains?"

"Scenario:

• Parent owns 100% of Company A.
• Parent/Adult Child are 50/50 partners in Company B.
• Unrelated entities.

Am I correct in that there is no controlled group here? It is my understanding that ownership is only attributed from/to Parent/Adult Child if they own over 50%, not 50% exactly. Or am I not reading the rules correctly?"

"Bonuses not excluded comp. Employer pays a bonus, NOT off-cycle (i.e., paid with a regular paycheck, so EE just gets a larger paycheck for that pay period). Say Employee A has a $100/paycheck deferral election. Employer should just withhold 'Normal' election correct? Since it is being paid in a regular paycheck, there would not be an increase in deferrals withheld?"

"Worth a read. This will change our world dramatically. For the better or for the worse I do not know. My guess is some of both." [Loper Bright Enterprises, Inc. v. Raimondo, Sec. of Comm., No. 22-451 (S. Ct. Jun. 28, 2024)]

"Helpfully expound upon the restrictions for distributions of rollover amounts. Particularly, if rollover amounts remain subject to in-service distribution restrictions. The provenance of the rollover amounts perforce might affect the situation, if the rollovers proceeded from elective deferrals, Roth amounts, after-tax distributions, amongst perhaps further items."

"Do I need to file a Petition for Contempt if my ex-husband refuses to sign a QDRO?"

"I am 67 and retired but have not begun withdrawals from my well-funded traditional IRA. We own our home outright -- no mortgage. We need a new car, but don't have the cash for it. What's the best strategy for buying this car? I have considered a home equity loan and car loans. But those would be paid back with IRA withdrawals anyway. Why not withdraw the full purchase price of the car from the IRA? I would the buy the car, then sell our old car on my own and return the proceeds from that sale to the IRA. If I sold our old car first we would be without a car and under pressure at the dealership to move faster than I am comfortable doing. [1] Is this my best strategy versus some type of loan? [2] Can I deposit the used car proceeds into the IRA?"

"Traditional 401k plan has an ACA feature with auto escalation (not EACA nor QACA). Plan is a calendar year plan but auto escalation occurs on July 1 to coincide with pay raises. Plan provides annual ACA and escalation notice between 30 -- 90 days before the beginning of the plan year. Question -- since the escalation takes effective later than 90 days after the annual notice is given, is a second notice required to be given later in the year? I have searched the EOB and these boards, but can only find notice references when the escalation occurs on the first day of the plan year. I am thinking a second notice should be given, but am getting push back to prove it."